Oracle R12 Contra Charging

[Samer_dweik]

What the business demand here is ?Net off your supplier balance in AP (Payables) with customer balance in AR (Receivables)?

These kinds of business scenario always exist, specially if you are dealing with client whose line of business is either Airlines or Cargo or Healthcare domain. Such events are always there, therefore designing, configuring and identifying such need is foremost important step while implementing ERP.

What we seen after 11.5.9 , where similar kind of functionality Oracle has offered in term of ?Contra Charging? which initially limited in European Localization and on and after 11.5.10, the same functionality have been standardize and incorporated in the product.

Contra Charging

Contra Charging allows you to select customer and suppliers through the screen and net their balances. This will submit two requests used to populate the Receivables and Payables Transaction Interface. This credit memos can then be imported through the standard invoice import in AR and AP.The base Functionality that currently exist in 11.5.10 are:

Use the Contra Charging window to physically match the customer to the supplier and allocate an amount for contra charging
Automatically populate the AR and AP Invoice Interface tables to create credit memos for the source Contra
Import the invoices
in AR with the Submit Invoice Import window, using the source Contra
in AP with the Auto Invoice Import Program on the Run Auto Invoice window, using the source Contra
Use the standard functionality to post the imported credit memos to Oracle General Ledger
Use the Contra Netting Report
to report on the netted contra charging transactions
to check that the contra charging has been carried out successfully in Oracle Receivables and Oracle Payables
How to make Contra Charging Feature enabled

Follow the below mentioned steps and you should be able to use the contra charging functionality.

1.Define document sequences, assign the document sequence to Contra document category.

You can assign a unique document sequence to each invoice and payment document in your Payables system so you have a unique identifier for each document.
A document category is a set of documents (invoices or payments) that share similar characteristics. You can assign a single document sequence to one or more document categories.
Use assignment window in System administrator responsibility to attach the document category with the document sequence created for contra charging invoices.
2. Setup Payables Contra Source.

A lookup is any predefined value that was not defined in a setup window.

3. Setup user profile for AP Responsibility, including the following:

Tax: Allow Override of Tax Code (Yes)
Tax: Allow Override of Customer Exemption (Yes)
Sequential Numbering (Partially Used)
Hope this will be useful for all

for more detail feel free to contact me
abussouss2@hotmail.com